The New York Stock Exchange announced that the staff of NYSE Regulation has commenced delisting proceedings for the stock of AAC Holdings after the addiction treatment company failed to maintain a $15 million market cap over a trading period of 30 consecutive days.
Despite increasing its revenue from the first quarter of the year to the second and decreasing its operating expenses in the second quarter compared the same prior-year period, American Addiction Centers has faced a bumpy 2019. In June, AAC president and COO Michael Nanko resigned one month after CEO Michael Cartwright and CFO Andrew McWilliams conducted a call with investors to map out a 10-year strategy for the company.
Earlier this month, four of the company's seven board members resigned, leaving AAC with too few directors on its audit committee to remain compliant with NYSE regulations, according to a Nashville Business Journal report. (AAC announced the appointment of three new board members later in October.) The Business Journal also reports that AAC is in default on a $30 million loan, and the company had received three delisting warnings from the NYSE in a five-month period prior to the decision to commence delisting proceedings was announced on Friday.
AAC Holdings will release its third quarter earnings and host a conference call and webcast with investors on Nov. 7. In a news release announcing the earnings call, AAC said “currently, the company expects sequential positive operating results for the third consecutive quarter.”